MITEK SYSTEMS INC (MITK) Stock Fundamental Analysis
NASDAQ:MITK - Nasdaq - US6067102003 - Common Stock - Currency: USD
MITK gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 284 industry peers in the Software industry. While MITK is still in line with the averages on profitability rating, there are concerns on its financial health. MITK may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
MITK had positive earnings in the past year.
In the past year MITK had a positive cash flow from operations.
Each year in the past 5 years MITK has been profitable.
MITK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MITK's Return On Assets of 3.13% is fine compared to the rest of the industry. MITK outperforms 72.89% of its industry peers.
The Return On Equity of MITK (6.05%) is better than 74.65% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.11%, MITK is in the better half of the industry, outperforming 73.24% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MITK is significantly below the industry average of 12.36%.
The 3 year average ROIC (3.14%) for MITK is below the current ROIC(4.11%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.13% | ||
| ROE | 6.05% | ||
| ROIC | 4.11% |
ROA(3y)1.2%
ROA(5y)2.02%
ROE(3y)2.4%
ROE(5y)3.45%
ROIC(3y)3.14%
ROIC(5y)3.84%
1.3 Margins
MITK has a Profit Margin of 7.51%. This is in the better half of the industry: MITK outperforms 74.65% of its industry peers.
MITK's Profit Margin has declined in the last couple of years.
MITK has a Operating Margin of 11.26%. This is in the better half of the industry: MITK outperforms 78.17% of its industry peers.
MITK's Operating Margin has declined in the last couple of years.
MITK has a better Gross Margin (85.84%) than 94.01% of its industry peers.
In the last couple of years the Gross Margin of MITK has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.26% | ||
| PM (TTM) | 7.51% | ||
| GM | 85.84% |
OM growth 3Y-43.54%
OM growth 5YN/A
PM growth 3Y-34.17%
PM growth 5YN/A
GM growth 3Y-0.79%
GM growth 5Y0.08%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MITK is destroying value.
MITK has less shares outstanding than it did 1 year ago.
The number of shares outstanding for MITK has been increased compared to 5 years ago.
Compared to 1 year ago, MITK has a worse debt to assets ratio.
2.2 Solvency
MITK has an Altman-Z score of 1.76. This is a bad value and indicates that MITK is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.76, MITK is in line with its industry, outperforming 47.54% of the companies in the same industry.
MITK has a debt to FCF ratio of 3.19. This is a good value and a sign of high solvency as MITK would need 3.19 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.19, MITK is doing good in the industry, outperforming 64.08% of the companies in the same industry.
A Debt/Equity ratio of 0.68 indicates that MITK is somewhat dependend on debt financing.
The Debt to Equity ratio of MITK (0.68) is worse than 68.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 3.19 | ||
| Altman-Z | 1.76 |
ROIC/WACC0.55
WACC7.43%
2.3 Liquidity
A Current Ratio of 1.04 indicates that MITK should not have too much problems paying its short term obligations.
With a Current ratio value of 1.04, MITK is not doing good in the industry: 73.59% of the companies in the same industry are doing better.
MITK has a Quick Ratio of 1.04. This is a normal value and indicates that MITK is financially healthy and should not expect problems in meeting its short term obligations.
MITK's Quick ratio of 1.04 is on the low side compared to the rest of the industry. MITK is outperformed by 72.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
MITK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 49.32%, which is quite impressive.
MITK shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.42% yearly.
MITK shows a small growth in Revenue. In the last year, the Revenue has grown by 7.76%.
The Revenue has been growing by 15.26% on average over the past years. This is quite good.
EPS 1Y (TTM)49.32%
EPS 3Y8.58%
EPS 5Y17.42%
EPS Q2Q%50%
Revenue 1Y (TTM)7.76%
Revenue growth 3Y12.83%
Revenue growth 5Y15.26%
Sales Q2Q%10.56%
3.2 Future
Based on estimates for the next years, MITK will show a small growth in Earnings Per Share. The EPS will grow by 2.38% on average per year.
The Revenue is expected to grow by 6.37% on average over the next years.
EPS Next Y-7.92%
EPS Next 2Y3.49%
EPS Next 3Y2.38%
EPS Next 5YN/A
Revenue Next Year3.27%
Revenue Next 2Y5.66%
Revenue Next 3Y6.37%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 8.88, the valuation of MITK can be described as reasonable.
MITK's Price/Earnings ratio is rather cheap when compared to the industry. MITK is cheaper than 93.31% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.65. MITK is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 9.41, the valuation of MITK can be described as reasonable.
Based on the Price/Forward Earnings ratio, MITK is valued cheaply inside the industry as 92.96% of the companies are valued more expensively.
MITK's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.88 | ||
| Fwd PE | 9.41 |
4.2 Price Multiples
94.01% of the companies in the same industry are more expensive than MITK, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, MITK is valued cheaply inside the industry as 95.77% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.36 | ||
| EV/EBITDA | 7.31 |
4.3 Compensation for Growth
The decent profitability rating of MITK may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.51
EPS Next 2Y3.49%
EPS Next 3Y2.38%
5. Dividend
5.1 Amount
No dividends for MITK!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.68
+0.22 (+2.33%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners78.41%
Inst Owner Change1.93%
Ins Owners2.29%
Ins Owner Change4.07%
Market Cap441.02M
Analysts81.67
Price Target13.26 (36.98%)
Short Float %5.91%
Short Ratio5.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)19.02%
Min EPS beat(2)1.42%
Max EPS beat(2)36.62%
EPS beat(4)3
Avg EPS beat(4)30.19%
Min EPS beat(4)-5.73%
Max EPS beat(4)88.46%
EPS beat(8)5
Avg EPS beat(8)12.66%
EPS beat(12)8
Avg EPS beat(12)16.56%
EPS beat(16)12
Avg EPS beat(16)18.92%
Revenue beat(2)2
Avg Revenue beat(2)4.07%
Min Revenue beat(2)0.88%
Max Revenue beat(2)7.26%
Revenue beat(4)3
Avg Revenue beat(4)0.65%
Min Revenue beat(4)-8.11%
Max Revenue beat(4)7.26%
Revenue beat(8)4
Avg Revenue beat(8)0.1%
Revenue beat(12)7
Avg Revenue beat(12)3.39%
Revenue beat(16)9
Avg Revenue beat(16)3.47%
PT rev (1m)-0.76%
PT rev (3m)-0.76%
EPS NQ rev (1m)0.18%
EPS NQ rev (3m)-23.65%
EPS NY rev (1m)-1.51%
EPS NY rev (3m)-2.44%
Revenue NQ rev (1m)0.77%
Revenue NQ rev (3m)-4.08%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.88 | ||
| Fwd PE | 9.41 | ||
| P/S | 2.49 | ||
| P/FCF | 9.36 | ||
| P/OCF | 9.11 | ||
| P/B | 2 | ||
| P/tB | 9.38 | ||
| EV/EBITDA | 7.31 |
EPS(TTM)1.09
EY11.26%
EPS(NY)1.03
Fwd EY10.62%
FCF(TTM)1.03
FCFY10.68%
OCF(TTM)1.06
OCFY10.97%
SpS3.89
BVpS4.83
TBVpS1.03
PEG (NY)N/A
PEG (5Y)0.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.13% | ||
| ROE | 6.05% | ||
| ROCE | 8.69% | ||
| ROIC | 4.11% | ||
| ROICexc | 6.42% | ||
| ROICexgc | 22.72% | ||
| OM | 11.26% | ||
| PM (TTM) | 7.51% | ||
| GM | 85.84% | ||
| FCFM | 26.56% |
ROA(3y)1.2%
ROA(5y)2.02%
ROE(3y)2.4%
ROE(5y)3.45%
ROIC(3y)3.14%
ROIC(5y)3.84%
ROICexc(3y)4.75%
ROICexc(5y)6.3%
ROICexgc(3y)31.47%
ROICexgc(5y)27.48%
ROCE(3y)4.04%
ROCE(5y)4.94%
ROICexcg growth 3Y-20.18%
ROICexcg growth 5YN/A
ROICexc growth 3Y-40.05%
ROICexc growth 5YN/A
OM growth 3Y-43.54%
OM growth 5YN/A
PM growth 3Y-34.17%
PM growth 5YN/A
GM growth 3Y-0.79%
GM growth 5Y0.08%
F-Score8
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 3.19 | ||
| Debt/EBITDA | 4.13 | ||
| Cap/Depr | 7.82% | ||
| Cap/Sales | 0.72% | ||
| Interest Coverage | 15.68 | ||
| Cash Conversion | 133.14% | ||
| Profit Quality | 353.47% | ||
| Current Ratio | 1.04 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 1.76 |
F-Score8
WACC7.43%
ROIC/WACC0.55
Cap/Depr(3y)7.2%
Cap/Depr(5y)9.44%
Cap/Sales(3y)0.74%
Cap/Sales(5y)0.83%
Profit Quality(3y)714.7%
Profit Quality(5y)578.49%
High Growth Momentum
Growth
EPS 1Y (TTM)49.32%
EPS 3Y8.58%
EPS 5Y17.42%
EPS Q2Q%50%
EPS Next Y-7.92%
EPS Next 2Y3.49%
EPS Next 3Y2.38%
EPS Next 5YN/A
Revenue 1Y (TTM)7.76%
Revenue growth 3Y12.83%
Revenue growth 5Y15.26%
Sales Q2Q%10.56%
Revenue Next Year3.27%
Revenue Next 2Y5.66%
Revenue Next 3Y6.37%
Revenue Next 5YN/A
EBIT growth 1Y700.3%
EBIT growth 3Y-36.3%
EBIT growth 5YN/A
EBIT Next Year19.39%
EBIT Next 3Y21.32%
EBIT Next 5YN/A
FCF growth 1Y72.26%
FCF growth 3Y-5.59%
FCF growth 5Y18.06%
OCF growth 1Y71.49%
OCF growth 3Y-5.32%
OCF growth 5Y17.33%